IRVINE, Calif.—Reuters reported Wednesday that hedge fund Paulson & Co has amassed more than 6 million shares of
Allergan (NYSE: AGN) stock and supports a deal between Allergan and
Valeant Pharmaceuticals (NYSE/TSX: VRX), people familiar with the matter told Reuters. The position is expected to make the prominent U.S. hedge fund, led by John Paulson, one of the top 10 to 15 holders of Allergan, according to Thomson Reuters shareholder data as of March 31.

Paulson's new position in Allergan could give Valeant a boost, as the company tries to drum up support from at least 25 percent of Allergan shareholders so that it can call a special meeting. Valeant and its ally, Pershing Square Capital Management, are seeking to call a meeting to elect new directors to Allergan's board, which could lead to a takeover of the company.

On Monday, Allergan’s board unanimously determined that Valeant’s (NYSE/TSX: VRX) unsolicited exchange offer to acquire all outstanding common shares of Allergan “substantially undervalues the company, creates significant risks and uncertainties for Allergan stockholders, and is not in the best interests of the company and its stockholders,” according to a
statement released by Allergan.